Nifty gains for 3rd day, ends above 7900; Wipro surges 3%

The market rallied for the third consecutive session on Tuesday with the benchmark Nifty closing above the 7900 level supported by banks, metals, auto and capital goods stocks.

The 30-share BSE Sensex rose 145.80 points to close at 26575.65 and the 50-share NSE Nifty climbed 48.35 points to 7927.75. Even the BSE Midcap and Smallcap close higher, up 0.9 percent and 0.2 percent, respectively.

After looking at the kind of reforms announced by the government in last two days, experts expect the market to continue its upward trajectory in the days to come.

The Sunday election results, then the couple of announcements that have come about for the coal as well as the diesel deregulation and the gas price hike, I think that changes the pace completely as far as the reforms are concerned, believe Nipun Mehta, founder and chief executive officer, Blue Ocean Capital Advisors.

He feels there are going to be more expectations now coming in from the government between now and the finance budget about four months away.

Meanwhile, in a move to decide the fate of coal blocks that were de-allocated by the Supreme Court recently, the government on Monday proposed an ordinance to allow e-auction of mines to private players while adding that state-run companies would be allocated mines directly.

Auctioning of coal blocks in the next 3-4 months will be a positive for the industry, said Ravi Uppal, CEO and MD of Jindal Steel & Power (JSPL).

JSPL rallied more than 7 percent followed by Sesa Sterlite with 4.4 percent gains. Tata Steel and Hindalco Industries climbed over a percent.

Capital goods majors BHEL, and Larsen and Toubro rallied 4.3 percent and 1 percent, respectively. Gail India was also one of the top five gainers, up 4.4 percent.

Coal India slipped 1.6 percent after the Cabinet recommended promulgation of an ordinance that will deal with the process of coal mine allocation of deallocated blocks. Investors of the state-run company are concerned that about the enabling clause within the ordinance that will allow commercial players in the coal mining business, once okayed. It is said this provision will serve as a threat to Coal India to ramp up its production.

However, Finacial Technologies tanked 20 percent after the government issued draft order for merger of NSEL with company, saying the entire business of NSEL will be transferred to Financial Technologies. Finance Technologies was not in favour of NSEL’s merger with company.